Mortgage 8 years after Debt Relief Order (DRO)

About to apply for a mortgage - do I have to disclose that I had a DRO (8 years since end of moratorium) even if it has been removed from the register and my file?

I'm fortunate enough to have a deposit that takes me over 50% and my credit rating is now very good. For most lenders would this outweigh the past DRO?

Comments

  • ACG
    ACG Posts: 24,457 Forumite
    Part of the Furniture 10,000 Posts Name Dropper I've helped Parliament
    edited 8 April 2024 at 9:14AM
    The general rule of thumb is to answer the question asked. 
    Have you EVER had a DRO, you should probably answer as yes. 
    Have you in the last 6 years been in a DRO, then the answer would be no. 

    However, I think for most people the problem is not the insolvency itself that causes it to fail credit scoring but the adverse on the credit report. I have seen plenty of cases fly though 3 years discharged where the debts were not on the credit report (HMRC debts for example). 

    But I think regardles of the question asked, the age, your credit report presumably being clear and your deposit, you should be fine. All I would say is that some lenders hold internal records going back further. If RBS/Natwest were in the DRO for example, they will not accept you (unless they were repaid in full). 
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • mark222_2
    mark222_2 Posts: 8 Forumite
    Part of the Furniture First Post Combo Breaker
    edited 8 April 2024 at 10:08AM
    Thank you - that's really helpful.

    Do you think with the past DRO (needing to avoid Lloyds Banking Group & Santander) and also working as a supply teacher (no contract but good record of income) that I would be better using a mortgage broker? Would a specialist broker be required?


  • ACG
    ACG Posts: 24,457 Forumite
    Part of the Furniture 10,000 Posts Name Dropper I've helped Parliament
    I dont think you need a broker. I think everything is that old, if you feel confident enough and just do a few basic checks your probably more than capable on your own. That being said a broker brings experience if problems do arise. 
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • mark222_2
    mark222_2 Posts: 8 Forumite
    Part of the Furniture First Post Combo Breaker
    Thanks again for replying to my questions - much appreciated!
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